Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

U.S. Designates China as Currency Manipulator

wsj.com

Post reply on HN
Print view View original

161–170 of 356 posts

Re: U.S. Designates China as Currency Manipulator

#161

Post by ElFitz »

qwerty456127 wrote: post #136

Isn't being able to manipulate their currencies exactly the reason countries maintain currencies of their own? Don't other countries like Japan and the USA manipulate their currencies routinely?

They also do it to have currencies better reflecting their economical state, with it's own advantages and disadvantages.

I'd say a developing country with a small internal market typically wouldn't have a strong currency, which would be great for their exports, thus supposedly boosting their economic growth. Without any manipulation.

But maybe I'm getting it wrong

Re: U.S. Designates China as Currency Manipulator

#162

Post by lr4444lr »

rossdavidh wrote: post #67

So, really, is there any doubt that this is true? China's currency exchange rate has been abnormally stable for a long time, and the Obama, Bush, Clinton, Bush, and Reagan administrations all knew it was the result of currency manipuliation. They just found it politically unpalatable to admit it out loud. The real question would be, why is the U.S. finally admitting this out loud? 1) amping up a trade war 2) decoupli…

There is a general theory that the current US administration's foreign policy, from Russia, to North Korea, to Iran, is all primarily geared to checking China. It's a bit tinfoil hat, I admit, but it's not implausible.

Re: U.S. Designates China as Currency Manipulator

#163

Post by hestipod »

resters wrote: post #84
devoply wrote: post #6

Earlier quoted context omitted.

[flagged]

Comments critical of Trump are getting downvoted and the users throttled. Not sure what is going on.

I think its a combination of a few things. First I think there are automod policies that use keywords in these conroversial topics to throttle. Second I think an ugly truth people don't want to admit is tech is heavily slanted to his supporters and those who find his values appealing due to the gender, class and age weighting in the industry, and nationality on this site being predominately American. Third there is a concentrated effort in every relatively neutral forum to downvote/argue/oppose, some of which is organic and some active measures. You often see an initial and rapid hit and downvoting of comments critical of him or the country in general, but then as the other hemisphere wakes up it balances out.

Re: U.S. Designates China as Currency Manipulator

#164

Post by _7fvc »

zaroth wrote: post #157
_7fvc wrote: post #132

China have been manipulating their currency before this week's drop. They use USD to buy CNY to prop up CNY exchange rate. If they stop buying CNY using USD, the value of CNY would fall (happening now). So China is technically no longer manipulating their currency. Why are they doing this? My guess is to respond to trade war tariff. The US is manipulating USD through Fed interest rate. The Fed lowers interest rate to…

(Don’t reply to temp comments because then I can’t delete them!)

Corrected.

Re: U.S. Designates China as Currency Manipulator

#165

Post by 9nGQluzmnq3M »

peterwei87 wrote: post #58

>Mnuchin had warned in June that China could be designated a currency manipulator if it stopped intervening to prop up its currency. https://www.bloomberg.com/amp/news/articles/2019-08-05/u-s-t...

That statement bears repeating with italics for emphasis:

"China could be designated a currency manipulator if it stopped intervening to prop up its currency."

In other words, if China stops manipulating its currency to tilt the table in favor of the US, the US will designate China a manipulator to reflect the fact that they are no longer manipulating it!

Re: U.S. Designates China as Currency Manipulator

#166

Post by LegitShady »

chiefalchemist wrote: post #148
tenpies wrote: post #104

Earlier quoted context omitted.

> China is also a huge foreign debt holder, and if presumably no longer a buyer due to decoupling, will send US interest rates skyrocketing. Before that happens, the capital exodus demanding to liquidate their Yuan for USD would have burned through the country's USD reserves and they would be insolvent. This is quite similar to what happened in South Korea in 1997 and it took IMF intervention to stabilize the country…

> "...but only one of them would see its financial system collapse." Unless that is an absolute certainty then and this is a game of high stakes chicken, then I would say the USA has more to lose. While China has certainly developed in the last couple decades they are still relatively used to living with less. On the other hand, Ameicans lose their minds when Facebook goes down for an hour. That is, there would be be…

>Unless that is an absolute certainty then and this is a game of high stakes chicken, then I would say the USA has more to lose.

Nothing is ever certain and that's not how people make decisions. What are you waiting for Chinese to use manipulated currency to buy local factories all over the world? It's already nearly too late.

Re: U.S. Designates China as Currency Manipulator

#167

Post by reaperducer »

tcbawo wrote: post #130
AnthonyMouse wrote: post #123

Earlier quoted context omitted.

> Will there be more tariff increases or sanctions? And then China will devalue their currency even more. So where does it end? Currency devaluation is, among other things, effectively a subsidy for exports, a little bit like the opposite of a tariff. But it's not exactly the opposite, which makes doing it in response to tariffs a bit desperate. If you're selling something for $100 and someone sticks a $10 tariff on…

Or it could be an act of desperation to keep their factories running at full capacity. They have a large segment of the population that is only tolerant of the authoritarian regime while their economic prospects are improving.

That's pretty much true for every country.

I had a boss who used to say, "Civilization is only three meals deep."

Re: U.S. Designates China as Currency Manipulator

#168

Post by rdtsc »

Spooky23 wrote: post #151

It means the Trump family will make a bunch of money on the volatility, and the US will capitulate in a few months.

> Trump family will make a bunch of money on the volatility,

Why not just set up a foundation and request all the governments who want arm deals or other favors to donate it. Forcing China do devalue its currency seems like a very complicated way of going about it.

Re: U.S. Designates China as Currency Manipulator

#169

Post by NicoJuicy »

China has started invading Europe through Tsjechie also.

Just read a disturbing dutch article and Europe should join the US.

I wasn't sure before, but I'm sure now.

Here's a small report of the EU : https://www.europarl.europa.eu/thinktank/en/document.html?re...

Yeah, it's disturbing and it doesn't even contain all the info...

Post reply on HN